The administration puts 550 jobs at risk at the company which specialises in furniture, curtains and carpets. Paul Simon is headquartered in Barking, East London and operates from 51 leasehold stores, largely in out of town retail parks in the south and south east, as well as an online platform. The company had been running a 50% off sale, plus an extra 20% off selected items, since January.

Lee Manning, Deloitte partner, said: ‘Like many other retailers, Paul Simon has been hit hard by the uncertain economic environment. In addition, its core business has been undermined by the increasing importance of online sales causing an erosion of margins. This was compounded by the impact of the recent widespread flooding which restricted many customers’ access to several stores. These issues made an element of the store portfolio unprofitable and led to a projected imminent cashflow deficiency resulting in the administration appointment.’

The administrators have said they will continue to trade Paul Simon while seeking a buyer for all or parts of the business as a going concern.